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The marriage between the two was annulled and they both left town.Billy returns to Genoa City in August of 2006 for his father John's funeral.
When it is revealed that Billy has developed an internet gambling problem, Jack relocates him to Hong Kong.Chloe was taken to the hospital where Billy watched as Cane acted as the baby's father.Billy got drunk after and had sex with Jack's wife, Sharon Abbott.Billy was also disappointed to hear that Cane got a CEO position at Jabot Cosmetics before he did and he confronted Jill about it.Billy teamed up with the Abbott side of his family and the Bardwells to take over Jabot.After the truth came out Cane refused to allow Billy to be the father but Billy consulted a lawyer about his paternal rights options.
After he brought a toy to baby Delia, Billy was punched by Cane and intended to marry Chloe to get his paternal rights. When Sharon became pregnant, Billy, Jack, and Nick Newman, were all contenders as potential fathers to her baby. Billy was miserable in his marriage with Chloe, so he started to date Mac (who turned out to not be his cousin after all). Billy and Mac started getting closer and closer, until Mac decided to be Lily's surrogate.
Billy fired her, and when he tried to visit Delia on Christmas while drunk, Chloe kicked him out after he almost drops the baby.
On New Years Eve, his deceased father, John, visited him in a vision and showed him what his life would be like if he kept drinking: Mac would marry Kevin and have his kid, Kevin would take over Restless Style, his family would forget about him, Delia would grow up resenting him and he wouldn't even show up for her wedding day. Billy started to have an affair with the married Victoria Newman, while she was divorcing her husband, JT.
The following morning Cane learned the truth about the paternity of the baby and decided to fight for it.
Lily dumped Billy after he confessed to fathering Chloe's baby.
Billy decided to do something different with his life so he decided to go to Louisiana to help Brock Reynolds build houses for the poor. Billy returned after a few months and reunited with Mac.